Small and Medium Sized Enterprises College - Essay Example

Extract of sample Small and Medium Sized Enterprises College

In this report, a research shall be undertaken on the various issues that are faced by a SME, and how they manage to over come these issues. The aim of any business is to prosper and grow in size, and the aims that are usually kept in mind for a SME shall also be discussed in this report. A critical analysis of how a SME functions and their distinctive factors have been entailed in order to give the reader a proper understanding of all the functions of a small and medium enterprise. The purpose of this report is to give the reader an insight in a small or medium enterprise, and what are their technicalities and functionality level.
Firstly, an introduction has been given, which then follows in to the detailed elaboration of a small and medium enterprise and their complete functionality and business abilities. All the issues that are faced by a SME are discussed in detail as well.
A SME, or a small and medium enterprise whose head count fall below a certain level. For a small enterprise, the number of employees need to be less than fifty, whereas if the number of employees are less than 250, then the business is classified as a medium enterprise (European Commission , 2003)
A SME is usually run by a sole trader, and all profits go to him. ...
The number of SMEs in any small country would usually surpass that of the large numbers, but their limited profit potential often causes a hindrance for a SME to grow in size and/ or expand.

Chapter-SME.

i) Introduction:
In this chapter, all the problems and issues that are associated with a small scale business have been discussed, including their aims and objectives and how these businesses function on such a small scale. Their main sources of finance, as well as profit capabilities have been discussed, as well as the ways by which these businesses tend to make money.
A small scale business is extremely important to the economy of a country, and this is because of the total accumulated profits of all such businesses that add up to form a significant part of the GDP and the GNP of a country (Small Business Start up Guide, 2010). Therefore, due to the significance of a small scale business, the government has introduced several laws by which they ensure that small scale businesses remain protected and are not harmed by businesses working on a larger level (Rosewood, 1995)

ii) Research Issues:
A SME functions on a very small level, and the employees that are usually working in a SME are quite illiterate or do not have the desired level of qualification that is needed. Commonly, a small scale business can be functional in several ways. For instance, a small handicraft business would be regarded as a SME. This is because i) the number of profits generated by a business are quite low and not consistent and ii) the number of employees that are working in a SME are lower than 50, which is the actual limitation set by the
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Summary

A SME, also known as a small and medium enterprise is a business that functions on a small scale. The role of a small and medium enterprise is extremely pivotal for the economy of any country, and hence their rise has been extremely swift. In order to define a business as a SME, there are certain limitations that are set…

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However, the common perception about SMEs suggests that such firms involve less than 500 employees. It has been identified that SMEs in EU countries generally operate with less than 250 employees. SMEs are the prime indicators for the job creation and income generation opportunities for the economies of the world.

This research paper addresses the importance of small business in the international contexts, mainly in relation to their roles in job creation, innovation and long term growth. This paper chooses UK as an example for how efficiently that small businesses play its roles and affect the economy of the country.

The goal of this research is to see what contemporary authors have to say about the major risks faced by small and medium enterprises as they entering international trade. Theoretical frameworks related to the question are considered.

However, latest evidence advises that internationally active SME small and medium enterprises (characterized here as companies with 500 or less workers, the delineation is broadly utilized in industrialized countries) emerge in large figures and the production of an significant task of this customary considering (eg, OECD, 1997; Rennie, 1993; Rose and Quintanilla, 1996).

Globalization and its technological development aspects have been fundamental factors to trade, especially to the global trade where involved parties may be from different geographical regions. Communication for product description and establishment of terms of trade towards a transaction’s contract establishment is easier, faster, and cheaper.

But times have changed with the globalisation regime multinational enterprises have made a distinctive mark on the local markets as well. While on the one hand this affected the economic factors of the region or country, on the other the SMEs started realising the need for pressing changes in the management of different aspects of the enterprise.

According to the report the foregoing represents a daunting challenge, in that these areas contain psychological as well as motivational facets, in addition to the organizational precepts. The cross-organizational implications, impacts, effects and influences are both subtle as well as profound, with the more successful enterprises employing both facets to maximise their success.

Although SME liquidity information at a Chinese level is not available, it is compiled for certain countries. In China, franchising has played an important role in the development and expansion of businesses for many years. For example, the number of business format franchisors has grown from 909 in 1990 to over 3,080 in 2000.

SME either Small or the Medium-Sized Enterprises generally serves as the whole Switzerland, by providing the full range of various services and products from the fixed-line and also from the mobile communications to data service, internet, maintenance as well as the operation of the whole IT infrastructure.